Question 1036619
$12585 * .035=$440.475 interest per year; for 5 years that equals $2202.375 total interest.  Compounded annually, your total account is 12585 * 1.035^5=14947.032156. Subtracting the original amount, you get 2362.03 total interest. $2362.03-2202.375=$159.66 more interest earned when compounded annually, versus simple interest.